The Central Government appreciated Chhattisgarh’s reforms in the financial management system.
Raipur, December 31, 2024: Under the leadership of Chief Minister Shri Vishnu Dev Sai, the Chhattisgarh government has achieved a significant milestone by implementing an IT-based financial management system to bring transparency and efficiency to administrative tasks. The Central Government, appreciating this digital reform, has provided the state with ₹250 crore as capital expenditure (CAPEX) incentive.
Chhattisgarh state has adopted the “Just In Time” (JIT) model and SNA Sparsh system for financial management of centrally sponsored schemes. This system facilitates the disbursement, tracking, and payment of funds while streamlining financial flows. Under this, the state government has integrated central funds through the RBI’s e-Kuber network and state funds through the Financial Management and Information System (FMIS). This initiative has ensured timely utilization of funds and real-time reporting of expenditure.
This reform utilizes a smart payment algorithm, enabling real-time payments based on payment trigger rules. This has improved the Public Financial Management System (PFMS) outcomes. Furthermore, by creating digital platforms and portals in the state, the common public is being provided benefits of government schemes faster and more transparently.
The Chhattisgarh government has made its technology-based reforms nationally relevant by promoting Digital India and Direct Benefit Transfer (DBT). This incentive amount will further strengthen the state’s infrastructure projects and infrastructure ecosystem.
Chief Minister Shri Vishnu Dev Sai has stated that technology-based reforms and good governance are the mantra for Chhattisgarh’s economic development. This achievement is not only a testament to administrative efficiency but also to our government’s commitment to good governance for the people. This endeavor by the Chhattisgarh government will not only technologically empower the state but also serve as an inspiration for other states.
It is noteworthy that the Chhattisgarh government is promoting the use of IT to accelerate administrative work. Under this, the JIT (Just In Time) model has been adopted under SNA Sparsh for releasing, distributing, and tracking funds for centrally sponsored schemes, and for better cash management. Through this, work is being done through a new system for centrally sponsored schemes, aiming to optimize fund utilization by obtaining funds from the consolidated central and state funds at the right time, focusing on efficient payment processing, and providing real-time expenditure reporting. In this, the state’s share of funds for centrally sponsored schemes is released through FMIS (Financial Management and Information System) and the central share through the RBI’s e-Kuber network, enabling real-time fund utilization.
A Just In Time system has been adopted for “timely” fund transfer to facilitate the Public Financial Management System by establishing a payment-cum-accounting network with an efficient fund flow system for centrally sponsored schemes. This involves efficient real-time payments based on trigger rules through algorithms under smart payments, which has helped improve financial management outcomes in the public sector.
The Chhattisgarh government is committed to strengthening the Central Government’s Digital India initiative. The Just In Time model for better cash management and Public Financial Management System (PFMS) supports Digital India and Direct Benefit Transfer (DBT). “Technology-based reforms and good governance for rapid economic growth” is one of the strategic pillars included in the budget statement for the financial year 2024-25. The Government of India is also providing full support for this reform in adopting the financial management system for centrally sponsored schemes. For this reform, the state has been provided ₹250 crore as an incentive for capital expenditure (CAPEX) by the Government of India. An additional ₹250 crore incentive is likely to be received. This amount will be used in the state’s infrastructure development projects.